In the overcrowded management consultancy market, many companies are floundering. But not Capita Group Plc, which has turned in pre-tax profits of UKP2.5m for the year to December 31, up 66% on 1989, on sales that soared 131% to UKP20m. Net assets stood at UKP2.6m, an increase of 31% over the start of the year, and cash balances were UKP3m, a UKP2m increase over the period. The consultancy division turned in revenues up 75% at UKP9m, demonstrating that it can stand up to the market pressures. And computer services contributed UKP5m revenues for the year, up 144% over 1989. In July, this division paid British Telecommunications Plc UKP1.3m to acquire its option to subscribe for 51% of the equity of Telecom Capita. Capita expects the newly expanded Telecom Capita to make good progress in its key markets – central and local government. The UKP19m five-year facilities management contract at Berkshire County Council is reported to be progressing well, and the UKP28m contract with Oxfordshire County Council is expected to commence in the next couple of months. Managed Services, a new division set up in January 1990 accounted for UKP664,000 of group revenues, and has announced a UKP2m two-year extension on its nine-month deal with the Driver and Licensing agency, DVLA, to provide a computerised telephone marketing and sales operation for the DVLA’s sale of personalised number plates. Marketing Services, which opened an advertising operation in Birmingham at the start of the year, has turned in revenues that soared 375% to UKP5m, and new subsidiary Capita Corporate Finance Ltd had a strong year, during which it acquired building services consultancy J E Greatorex and appointed managing director John Brameld to Capita’s board of directors, while Paul Pindar has been promoted from Capita finance director to managing director, and ex-British Rail deputy chairman Derek Fowler has been appointed non-executive deputy chairman.
